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2023 (7) TMI 1156 - AT - Income TaxPenalty levied u/s 271(1)(c) - quantum addition with respect to Franchise Fees deleted and the issues pertaining to disallowance of air fare, travelling expenses, website charges, Lodging & Boarding / food and catering charges have been remitted back to the Assessing Officer for a de-novo adjudication - DR submitted that there are contrary views taken by different benches of the Tribunal regarding the treatment of Franchise Fees and reference u/s 255(3) for constitution of Special Bench therefore, issues in the quantum appeal have not reached finality and that the penalty proceedings should be kept alive accordingly - HELD THAT:- It is settled position that when the additions made in the assessment order, on the basis of which penalty for furnishing inaccurate particulars is levied, are deleted, there remains no basis at all for levying the penalty. Accordingly no penalty can survive and the same is liable to be cancelled as in the given case. With regard to the petition for constitution of Special Bench in our considered view until the constitution and pronouncement of the decision of the Special Bench, the decision of the coordinate bench in the quantum appeal is binding on us. In view of these discussions and considering the facts of the present case, we hold that the penalty levied is not sustainable. - Decided against revenue.
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